A Political, Economic, Sociological, Technological, Legal and Environmental (PESTLE) analysis is a method of assessing the business environment.
The six sections of the analysis create a framework you can use to review any strategies you have in place or to work out a new direction, product or plan for your business.
The example below shows the type of information you should include in a PESTLE analysis. It also includes fictional examples of a product for overseas sale.
|Analysis factors||Example||Implications and importance|
|How certain factors may affect the business||Time frame - eg:
|Type - eg:
|Impact - eg:
|Importance - eg:
|Political - eg international trading policies||eg - possible trade barriers to protect domestic suppliers||Unknown||Negative||Increasing||Unknown|
|Economic - eg current UK economical situation||eg - strength of overseas economies versus UK may affect price/profitability||6-12 months (possibly longer)||Unknown||Unknown - dependent on the economy, and other countries' economies||Important|
|Social - eg overseas attitudes and opinions to product||eg - will product be accepted overseas?||6-12 months||Unknown||Unknown||Critical|
|Technological - eg new technologies||eg - can intellectual property rights be protected overseas||0-6 months||Negative||Unchanged||Important|
|Legal||eg - overseas product regulations||0-6 months||Negative||Unchanged||Critical|
|Environmental - eg sustainability||eg - pollution implications of transportation||n/a||Possibly negative||Unknown||Unknown|